Trump threatens to withdraw monetary support unless Palestinians talk peace. Donald Trump has decided to revoke the pledge to contribute $45 million for food aid, health services and other relief to the Palestinian refugees unless they resume the peace talk, as stated by him in a meeting with the Israeli Prime Minister Benjamin Netanyahu. Vice President Mike Pence visited Egypt, Jordan and Israel last weekend, but pointing out Trump’s notion of Jerusalem as Israel’s capital, as the reason, Palestinian leaders refused an audience with Pence.

What has happened? What did Trump do Now?

In reply to this, Trump said at the World Economic Forum in Davos, Switzerland, that the Palestinians have “disrespected” the US and hundreds of millions of dollars will not be spent for them “unless they sit down and negotiate peace.”

He took to Twitter, earlier this month, to issue a similar threat stating that the U.S. embassy will shortly be moved to Jerusalem “ahead of schedule by years,” if not fully functional, at least a “small version” of the embassy can be expected by sometime next year.

Trump’s Jerusalem announcement in December and his threat of backtracking on the nuclear deal with Iran unless thoroughly revised, has agitated the Palestinians consequently jeopardizing his own administration’s effort to renegotiate peace.

Although some parties have openly disagreed to Trump‘s decision, the Israeli leader, Netanyahu strongly supported him saying “we will back you all the way” and has also said that Trump’s decision on Jerusalem “pushes peace forward.”

Jerusalem’s status has certainly been a problem in the negotiations between the Israelis and Palestinians, and Trump said that his announcement “took it off the table; we don’t have to talk about it anymore.”

“You won one point and you’ll give up some points later on in the negotiation, if it ever takes place,” Trump said. “I don’t know that it ever will take place.”

Trump’s son-in-law and senior adviser, Jared Kushner has reportedly been working on developing a new peace plan for the Israeli-Palestinian conflict, along with his Middle East envoy Jason Greenblatt. Although little has been disclosed so far, the proposed plan is set to be released soon.

“It’s a great proposal for the Palestinians,” Trump said. “I think it’s a very good proposal for Israel.”